2017 (12) TMI 1783 - AT - Income Tax

Stay of recovery - penalty u/s 271(1)(c) - HELD THAT - Without going into merits of the appeal, considering the fact that the issue is in respect of penalty levied u/s.271(1)(c) of the Act and the assessee has paid ₹ 10 lakhs out of the demand of ₹ 50 lakhs and the appeal is posted for hearing on 02.01.2018, the assessee is granted stay of recovery of the balance of the disputed penalty for a period of two months from today. In the event that the assessee seeks an adjournment on 02.01.2018 being the date of hearing of the appeal, this stay granted to the assessee shall stand vacated.

Summary

Issues: Stay of recovery of disputed tax

Issue 1: Stay of recovery of disputed tax
The assessee filed a Stay Petition in its appeal against the penalty levied under section 271(1)(c) of the Act for long-term capital gains from the sale of agricultural lands. The assessee had paid ?10 lakhs out of the total demand of ?50 lakhs and requested a stay of recovery due to financial constraints, as the capital gains were reinvested in a residential house. The appeal was scheduled for a hearing on 02.01.2018. The Departmental Representative opposed the Stay Petition, citing the decision of the Ld.CIT(A) on the penalty. The Tribunal granted a stay of recovery for the balance of the disputed penalty for two months from the date of the order, with the condition that the stay would be vacated if the assessee sought an adjournment on the date of the appeal hearing.

In conclusion, the Stay Petition filed by the assessee was allowed, providing temporary relief from the recovery of the disputed tax amount. The Tribunal's decision was based on the specific circumstances of the case, considering the partial payment made by the assessee and the upcoming appeal hearing date. The order was pronounced in an open court on 29th December 2017 in Chennai.